Wagon Automotive, the car parts maker, is set to go into administration this week, putting 500 British jobs at risk.
Shares in the company, which employs another 4,000 across Europe, were suspended in October and since then management has been trying to secure funding from banks.
It ran into trouble when car sales fell and car companies reduced their orders.
Administrators are expected to be appointed to the UK business within days, with the fate of the European plants unknown.
The company hopes that it will be run as a going concern until a buyer can be found.